3 day guarantee passes through Parliament

Crucial changes to legislation underpinning the early childhood education and care (ECEC) landscape have passed through Parliament on what some anticipate to be the final parliamentary sitting day before the election, which must be held by 17 May 2025.

Under the changes parents and families will have access to three days of guaranteed subsidised childcare (sic.) The changes will commence from January 2026, and will remove the current Activity Test to guarantee subsidies for families earning up to $530,000 in a bid to lay down the foundations for a universal early education system.

From January 2026 families can get at least 72 subsidised hours of care each fortnight for each child regardless of how much work, training, study or volunteering they do.

Families caring for First Nations children will get 100 hours of subsidised care each fortnight for each child.

A signature policy of the Albanese government, the changes passed the parliament yesterday after the Greens brought on a vote. The coalition opposed the legislation.

During Question Time, Early Childhood Education Minister Anne Aly said ECEC was a sector “in desperate need of an overhaul.”

“We have made significant progress in reforming the sector across those three pillars of affordability, accessibility and a sustainable workforce, towards a vision of a universal early childhood education care sector that is simple, affordable and accessible,” she said.

This proposed change is part of the government’s pathway toward a universal early education and care system.

The 3-day guarantee explained

The Australian Government makes childcare (sic.) cheaper through Child Care Subsidy (CCS).

Currently the rate of CCS families receive depends on their circumstances, including:

• their combined family income
• hourly rate caps
• number of children in their care
• age of children in their care
• the amount of recognised activity they do.

Under the 3-day guarantee:

• all CCS eligible families will get 3 days’ subsidised care each week for each child
• families caring for First Nations children will get 100 hours of subsidised care each fortnight for each child.

Families will still get 100 hours of subsidised care each fortnight for each child if they:

• work, train, study or volunteer for more than 48 hours each fortnight, or
• have an exemption.

More information for families and ECEC providers will be developed over the coming months.